New York-based Take-Two Interactive Software, Inc. (TTWO) develops, publishes, and markets interactive entertainment solutions. Valued at $42.2 billion by market cap, the company's products are for console systems, handheld gaming systems and personal computers and are distributed through physical retail, digital download, online, and cloud streaming services.
Shares of this leading game publisher have outperformed the broader market over the past year. TTWO has gained 47.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.3%. In 2025, TTWO’s stock rose 24.2%, surpassing the SPX’s 8.7% rise on a YTD basis.
Narrowing the focus, TTWO’s underperformance is apparent compared to the VanEck Video Gaming and eSports ETF (ESPO). The exchange-traded fund has gained about 61.9% over the past year. Moreover, the ETF’s 35.2% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Aug. 7, TTWO reported its Q1 results, and its shares closed down by 4% in the following trading session. Its adjusted EPS of $0.61 surpassed Wall Street expectations of $0.27. The company’s revenue totaled $1.5 billion, representing a 12.4% year-over-year increase. TTWO expects full-year revenue in the range of $6.1 billion to $6.2 billion.
For the current fiscal year, ending in March 2026, analysts expect TTWO’s EPS to grow 107.1% to $1.16 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 27 analysts covering TTWO stock, the consensus is a “Strong Buy.” That’s based on 21 “Strong Buy” ratings, three “Moderate Buys,” and three “Holds.”
This configuration is more bullish than a month ago, with 20 analysts suggesting a “Strong Buy,” and one recommending a “Strong Sell.”
On Aug. 13, Rothschild & Co Redburn analyst Hamilton Faber kept a “Buy” rating on TTWO and raised the price target to $260, implying a potential upside of 13.7% from current levels.
The mean price target of $261.70 represents a 14.4% premium to TTWO’s current price levels. The Street-high price target of $285 suggests an upside potential of 24.6%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
